CFLOW.

txt
hruskovt@tuns.ca

---------------------------------------------------------------------

Cash Flow calculations

ELIMP and GO as in TVMA.

The idea is to have a series of cash flows uniform in time, usually

ate the beginning money is received and at the end it is paid, the idea
is to calculate interest rate of return or net present value, or
something similar to know if the project is worthwhile.

INTRO
The program asks for cash flows,
CF0 is cash flow zero and NF0 is
later the zero is substituted by
arrow to move between CF and NF.
is put the current NF# in zero.
defined by number
number of cash flows zero,
a sequential number. Use down and up
All the time the condition to stop

TOTAL gives total value of money received and number of periods

I/YR is interest per year (valid for NPV+ only)

P/YR number of period per year

IRR+ is the internal rate of return, calculated per period and

per year.

NPV+ gives at the given interest rate in I/YR

NPV net present value (the value of money at first period)
NUS net uniform series (the value of money as series of payments)
NFV net future value (the value of money at the end)

of course, negative means money paid and positive money received.

If you calculate IRR+ and then NPV+ without changing interest you
get zero for NPV, NUS and NFV.

Pressing NXT

DSPCFLOW shows a generic graphic to help understand cash flows.

PNPV plots NPV as a function of interest. Asks an initial interest

a final interest and the number of points to plot.
PNUS and PNFV do the same for NUS and NFV.

RESET clears all variables.

Example:

CF0 = 5000
NF0 = 1

CF1 = 2000
NF1 = 3

CF2 = 0
NF2 = 3
CF3 = -1000
NF3 = 5

CF4 = -800
NF4 = 8

IRR is 0.31% per period, 3.72% per year and there are 12 periods per year.

if you make interest rate 8%, NPV+ gives

NPV is 436.57
NUS is 24.54
NFV is 495.32

Try plotting NPV between 1 and 10% with 21 points.